NIGP CPP UPDATED CORE EXAM MANUAL QUESTIONS
AND ANSWERS MARKED A+
✔✔Actual Authority - ✔✔Specific right to perform acts and make decision or prescribe
rules governing the conduct of others as given to an agent by a principal.
✔✔Express Authority - ✔✔the authority of an agent, stated in the document or
agreement creating the agency
✔✔Implied Authority - ✔✔Authority that is not expressed or written into the contract, but
is only determined by inferences and reasonable deductions about actions that are
necessary to perform the expressly authorized acts. Can consider the conduct of the
principal regarding historical actions in the past.
✔✔Apparent authority - ✔✔Occurs when a principal allows or permits a person to
function in a capacity that creates the illusion that the person is an authorized agent of
the principal.
✔✔PESTEL Analysis - ✔✔The examination of political, economic, social, technological,
environmental, and legal factors and their implications for an organization. The use of
PESTEL analysis may require the planning team to perform such research or gather
data.
✔✔Mission Statement - ✔✔Useful because it defines not only where the organization is
at present but also identifies the future of the organization as well.
✔✔Vision Statement - ✔✔An organizational statement that clearly and concisely
addresses the future nature and purpose of the entity. A short statement that tells who
the organization is and where they are going.
✔✔policy manual - ✔✔Key provisions of enabling legislation or ordinance and are used
to forge a direct relationship between the legal foundation of an agency's procurement
program and the procurement rules and policies that guide the agency.
✔✔Procedure manual - ✔✔manual providing detailed information relative to the
performance of tasks within the job description
1- procurement goals, objectives and responsibilities
2- step-by-step outline of procurement process
3- guidelines and steps for preparing requisitions, developing requisitions, receiving and
inspection, and documenting vendor performance.
4- property and supply management programs including inventory control and
processes for transfer and disposal of surplus property.
5- cooperative purchasing programs and payment processes
6- A listing of important forms used in the procurement process, instructions to bidders
and general conditions governing contracting, and a glossary of procurement terms.
, ✔✔Strategic Sourcing - ✔✔subset of an entity's strategic procurement plan is a
strategic sourcing plan. Strategic sourcing is a methodology and process that enables
procurement professionals to analyze what and how they acquire products and services
with the objectives of lowering costs to the entity and improving supply fulfillment from
the producer level to the end user
✔✔Standardization - ✔✔Establishing agreement on the characteristics, quality, design,
and performance of products and services to be purchased.
✔✔Outsourcing - ✔✔A decision by a corporation to turn over much of the responsibility
for production to independent suppliers.
✔✔Privatization - ✔✔To change from government or public ownership or control to
private ownership or control.
✔✔Best Value - ✔✔Procurement method emphasizing value or price. RFP
✔✔value analysis - ✔✔method directed at all functions of a product or service to satisfy
the requirement of the lowest possible cost to the entity.
✔✔Price Analysis - ✔✔The process of comparing suppliers prices against each other or
an external benchmark
✔✔Cost Analysis - ✔✔Procedure that determines the costs of each service including,
labor, overheadddddd profit.
✔✔Spend Analysis - ✔✔Collecting, classifying, and reporting the expenditures of an
organization.
✔✔proactive approach - ✔✔Rather than react to a PR, procurement partners with
department during planning to share market trends, knowledge, and strategies.
✔✔determining true cost - ✔✔Determine operating cycle for equipment, identify and
quantify the factors that affect cost., calculate all costs at current rates and prices,
estimate future costs that will be incurred, total all costs and benefits to obtain the life
cycle cost.
✔✔Types of risk - ✔✔proposal, surety/liability, schedule, price, contractual,
performance,
✔✔Sourcing strategies - ✔✔Alternative procurement plans that give guidance to
assess, evaluate, and manage the supply base in ways that are consistent with overall
entity objectives
AND ANSWERS MARKED A+
✔✔Actual Authority - ✔✔Specific right to perform acts and make decision or prescribe
rules governing the conduct of others as given to an agent by a principal.
✔✔Express Authority - ✔✔the authority of an agent, stated in the document or
agreement creating the agency
✔✔Implied Authority - ✔✔Authority that is not expressed or written into the contract, but
is only determined by inferences and reasonable deductions about actions that are
necessary to perform the expressly authorized acts. Can consider the conduct of the
principal regarding historical actions in the past.
✔✔Apparent authority - ✔✔Occurs when a principal allows or permits a person to
function in a capacity that creates the illusion that the person is an authorized agent of
the principal.
✔✔PESTEL Analysis - ✔✔The examination of political, economic, social, technological,
environmental, and legal factors and their implications for an organization. The use of
PESTEL analysis may require the planning team to perform such research or gather
data.
✔✔Mission Statement - ✔✔Useful because it defines not only where the organization is
at present but also identifies the future of the organization as well.
✔✔Vision Statement - ✔✔An organizational statement that clearly and concisely
addresses the future nature and purpose of the entity. A short statement that tells who
the organization is and where they are going.
✔✔policy manual - ✔✔Key provisions of enabling legislation or ordinance and are used
to forge a direct relationship between the legal foundation of an agency's procurement
program and the procurement rules and policies that guide the agency.
✔✔Procedure manual - ✔✔manual providing detailed information relative to the
performance of tasks within the job description
1- procurement goals, objectives and responsibilities
2- step-by-step outline of procurement process
3- guidelines and steps for preparing requisitions, developing requisitions, receiving and
inspection, and documenting vendor performance.
4- property and supply management programs including inventory control and
processes for transfer and disposal of surplus property.
5- cooperative purchasing programs and payment processes
6- A listing of important forms used in the procurement process, instructions to bidders
and general conditions governing contracting, and a glossary of procurement terms.
, ✔✔Strategic Sourcing - ✔✔subset of an entity's strategic procurement plan is a
strategic sourcing plan. Strategic sourcing is a methodology and process that enables
procurement professionals to analyze what and how they acquire products and services
with the objectives of lowering costs to the entity and improving supply fulfillment from
the producer level to the end user
✔✔Standardization - ✔✔Establishing agreement on the characteristics, quality, design,
and performance of products and services to be purchased.
✔✔Outsourcing - ✔✔A decision by a corporation to turn over much of the responsibility
for production to independent suppliers.
✔✔Privatization - ✔✔To change from government or public ownership or control to
private ownership or control.
✔✔Best Value - ✔✔Procurement method emphasizing value or price. RFP
✔✔value analysis - ✔✔method directed at all functions of a product or service to satisfy
the requirement of the lowest possible cost to the entity.
✔✔Price Analysis - ✔✔The process of comparing suppliers prices against each other or
an external benchmark
✔✔Cost Analysis - ✔✔Procedure that determines the costs of each service including,
labor, overheadddddd profit.
✔✔Spend Analysis - ✔✔Collecting, classifying, and reporting the expenditures of an
organization.
✔✔proactive approach - ✔✔Rather than react to a PR, procurement partners with
department during planning to share market trends, knowledge, and strategies.
✔✔determining true cost - ✔✔Determine operating cycle for equipment, identify and
quantify the factors that affect cost., calculate all costs at current rates and prices,
estimate future costs that will be incurred, total all costs and benefits to obtain the life
cycle cost.
✔✔Types of risk - ✔✔proposal, surety/liability, schedule, price, contractual,
performance,
✔✔Sourcing strategies - ✔✔Alternative procurement plans that give guidance to
assess, evaluate, and manage the supply base in ways that are consistent with overall
entity objectives
